Banks are exploiting a boom in customers withdrawing cash on credit cards by hitting them with rip-off fees. Official figures show that borrowers are using credit cards to take out as much as £12 million a day from ATMs. Customers often have to use these to withdraw cash because they have left their debit card at home, had it stolen or cancelled due to fraud.

In some cases borrowers are being asked for two forms of I.D. that have been signed by an independent professional. The move primarily affects long-standing customers who applied for a credit card before M&S Bank introduced tougher identity checks to prevent fraud. But shoppers say the demands are ‘way over the top’ and fear they could be blacklisted by the firm if they do not comply with the security checks.

The Financial Conduct Authority said the time had come for providers to face an investigation into the charges they slapped on borrowers, who were often forced into taking credit with high rates of interest because poor credit scores mean they are locked out of the other side of a two-tier borrowing world, where record low rates are on offer.

Families expect to spend nearly £600 over Christmas, according to research by Equifax, with just under a third turning to a credit card to cover the costs. Choose the wrong way to borrow and the costs can quickly spiral with hefty interest. This is Money has rounded up the best credit cards to help you spread the cost and avoid a New Year debt hangover

Up to a million higher-rate tax payers could have been turned away by high street banks because of a bad credit score, according to a new survey. And the research by loan provider, Market Financial Solutions claimed 4 million people across the country could have been rejected for credit cards, bank loans and even overdrafts, despite owning assets worth more than the amount they wished to borrow.
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Virgin Money is offering borrowers a market-beating 30 months interest-free spending on it's new Purchase Credit Card. Virgin's new offer, which will appeal to those looking for a credit card to spread the costs of a large purchase, beats the previous best-buy deals from Tesco Bank and Sainsbury’s Bank with two additional months 0 per cent interest.

A whopping 62 per cent of landlords agreed a tenant's credit score was the most important factor affecting decisions on whether to let to them, followed by at age 44 per cent, while salary surprisingly ranked third at 41 per cent. Nearly half of letting agencies (48 per cent) now take credit scores into account, however 39 per cent of renters won’t ever be told if they fail the checks.

Furious John Lewis credit cardholders were hit with late payment fees and were unable to make purchases after the retailer's online account system suffered difficulties. The firm said any charges and interest incurred had been repaid, and insisted it had fixed the problem. But customers continued to report difficulties last night. ...read ...read ...read
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A quarter of those under 25 years-old are borrowing to pay their utility bills and 16 per cent resort to a credit card to pay their rent. More than half (52 per cent) admit to using plastic to pay for their groceries. Despite their dependence on credit, 60 per cent don’t pay off their credit card bill each month.

Previously borrowers would have had to turned to methods of borrowing secured against their home for amounts this high. The bank charges a headline rate of 6.7 per cent on amounts between £30,000 and £50,000 with repayment terms of between 12 and 84 months.

Unlike most credit cards, which charge an extra fee for spending in shops and withdrawing cash, the new Platinum travel card has no fee until the end of August 2018. After that, a 2.99 per cent fee applies.

Representative example: If you spend £200 at a purchase interest rate of 18.9% p.a. (variable) your representative rate will be 18.9% APR (variable). Credit limits and terms may vary based on your individual circumstances. Balance transfer offers and introductory fees limited to transfer made with 60/90 days of account opening. See product specific T&Cs.

Citizens Advice found a quarter of people are not asked about their financial situation or how they will repay the loan. City watchdog the Financial Conduct Authority clamped down on payday loan firms in 2015 and introduced a cap on interest charges. But many are still flouting the rules, leaving people with loans they can't afford.

The PayPlan research also revealed that Essex topped the list of the biggest debt hotspots, with the average borrower owing as much as £18,508. Cambridge and Belfast followed close behind with the average amounts owed of those referred to the debt management firm standing at £18,463 and £17,114 respectively.

Virgin Money has launched a new balance and money transfer credit card giving borrowers 41 months 0 per cent interest - the longest deal ever offered. The new card comes with a 4 per cent fee for shifting debt from an existing credit card or moving money to a current account if made within the first 60 days of opening the account.

The UK has now been spending on credit cards for 50 years, following the first issue of a Barclaycard on 29 June 1966. As of November last year, there were 60 million cards in circulation across the UK and the average household owes £2,387. Here are 15 things you probably didn't already know about them.

Looking to take out a loan? This Is Money picks out some favourite options to help you choose the best deal for your money, as well as pointing out some tricks to help you land even better offers ...read ...read ...read ...read
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FIND THE BEST CREDIT CARDS AND LOANS

Switching your debts to a balance transfer card can speed up the repayment of debt because most, or all, of your repayment goes toward wiping out the balance and not paying interest. But beware: there are caveats to consider and barriers to overcome when applying for such cards.

The survey by the consumer group Which? found 53 per cent had never contacted a credit rating agency - such as Experian, Callcredit and Equifax - to check their report. And it found widespread confusion about credit checks and how lending decisions are made.

Almost half of people who spend their earnings before their next payday claim their parents do the same, according to a study by TSB, while a third of adults who spend more than they earn admit their parents' were guilty of doing so.

Representative example: If you spend £200 at a purchase interest rate of 18.9% p.a. (variable) your representative rate will be 18.9% APR (variable). Credit limits and terms may vary based on your individual circumstances. Balance transfer offers and introductory fees limited to transfer made with 60/90 days of account opening. See product specific T&Cs.

Borrowers are throwing away as average £320 in interest by failing to shop around for the cheapest financing options when buying cars, home improvements holidays and weddings, according to research from Ikea-owned, Ikano Bank. Car-buyers are the worst hit, wasting as much as £520 to the bill by ignoring the most cost effective borrowing options.

If you've been thinking about taking out a personal loan, now might be a good time as record-low rates could be about to disappear. Personal loans rates are on the rise with the average cost of borrowing between £7,500 and £25,000 over five years having increased over the past month. ...read ...read ...read ...read
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Loans for new cars made up the bulk of new borrowing, but a growing appetite for cheap cash through personal loans also drove up debt. The annual growth rate of consumer credit hit 9.3 per cent in February, the highest pace since December 2005, the Bank of England's latest credit conditions survey revealed.

Customers who sign up to 0 per cent deals often wrongly believe their perk period starts when they transfer a balance or receive their card through the post. But Money Mail has found that the majority of credit card firms and banks start the clock ticking from the moment a borrower signs up. ...read ...read ...read ...read
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Falling personal loan rates means some rates are as good or better than what you could get through a remortgage or further advance from a mortgage lender. This is compounded by mortgage lenders making it harder to get finance.

Shoppers using Debenhams, House of Fraser or Topshop store cards could be in line for refunds after provider NewDay admitted imposing unfair charges. Following discussions with City watchdog the Financial Conduct Authority, NewDay has pledged to refund more than £4million to over 180,000 customers.

Taking out a store card for your favourite shop can be tempting with discounts on offer. However, card operators make their money from the sky-high interest attached - often ranging between 25 and 30 per cent. Forget to clear the balance each month and interest will quickly eat away at any savings made through the in-store discounts.

Three in five shoppers are unaware that using their card to pay for purchases in a foreign currency is classed as an overseas transaction which carries extra fees from their credit or debit card provider. The fees can add up to more than£20 a year.

Customers of 11 high street banks and card providers are in line for a pay out, including those with credit cards from Lloyds, Barclays, Santander and the Royal Bank of Scotland. Affinion International Limited sold products that it said would offer customers protection if their card was lost or stolen and they fell victim to fraud. However banks generally offer this cover anyway.

Financial services firm Virgin Money claims customers can tuck 'a little bit of rebellion' in their wallet with its new Sex Pistols credit card. But the card is hardly unleashing financial anarchy in the UK. Experts say its fees for allowing customers to transfer card balances from other providers are no better than those offered by rivals such as Barclaycard and Halifax. New homeowners Anders Nilsson and Hana Lewis switched to a new card after his deal with Barclaycard ended.

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